Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Did you get a great deal? Let us know in the Values & Prices Paid section!
Meet your fellow owners in our Owners Clubs

2013 and earlier Volvo XC90 Lease Questions



  • jayriderjayrider Posts: 3,602
    You are right on -- the prices for late model cpo vehicles are within a few grand of buying new for most euro cars. Buy new or offer at least 10k below what you can buy the car new.
  • kinngkinng Posts: 6
    Anybody? Please help!
  • My XC90 lease is up end of November so I am starting my research early.

    V6 FWD- looking for best residual/money factor combination between the following

    12,000 or 15,000 miles

    2 or 3 years

    Thanks in advance. I have helped family and myself lease/purchase 6 vehicles over the last 5 years, and thanks to this forum we have received some amazing deals!!
  • Just wondering if anyone has any numbers yet for the above post
  • Hi kinng. Volvo is phasing out Volvo Finance. Soon all of its special leases will be run through US Bank. The fact that you qualify for A-Plan pricing should not have any impact upon your ability to lease this vehicle through USB.

    Volvo is currently providing a $4,000 lease cash incentive plus an additional $500 dealer cash on leases of this model.

    Prices Paid: Buying & Leasing Experiences Forum
  • Car Man,

    Do we know what the rates are for the US bank leases?
  • hjh22hjh22 Posts: 2
    My 2008 Xc90 (6 cyl) with DVD and third row, lease is up in December and we are thinking of buying the car. My purchase price is 30,000 and I'll have about 23,000 miles on it.

    Looking back at past posts it looks like there is currently little leeway on getting the purchase price reduced. Figuring I had nothing to lose, I called Volvo Finance and the person I talked to told me the negotiation to purchase should be done with the dealer. I thought Volvo Finance was the only one who could reduce the purchase price? What am I missing and what are the odds of me getting the purchase price reduced below 30,000.

    Thanks in advance for your help
  • My thought is that if Volvo Finance were going to reduce the buy out, they would only do it through the dealer, because that will give the dealer an opportunity to make a buck on the deal. They don't want to cut out their dealers.

    That's only my thought, I don't know that for sure. Several years ago I tried to buy out a GM car at lease end and GMAC wouldn't talk to me, but the dealer was able to come up with an offer which included eliminating the final few montly payments plus a discount from the buy out. I'm sure there was something in it for him.
  • zamozamo Posts: 122
    VCFNA has no interest on negotiating as their leases are insured. They recoup the difference between the auctioned price and lease buyout. The dealer will be able to help a bit, but not enough. In my experience, it is better to buy it from a dealer that has already bought a car alike from auction.
  • autoboy19autoboy19 Posts: 119
    Here are the rates on U.S. bank leases

    Residuals for 12k miles per year (15k per year are 2% lower)

    U.S. bank does not have a 24 month lease program.

    XC90 FWD

    36 37%
    39 35%
    48 29%
    51 28%
    60 23%

    XC90 AWD

    36 39%
    39 37%
    48 31%
    51 30%
    60 25%

    R design models are 1% lower across the board. V8 models are 1% lower than the 3.2 AWD, except for the 36 and 39 month terms which are the same.

    The base money factors are .00214 for 48 and 51 months, and .00224 for 36, 39, and 60 months.
  • zamozamo Posts: 122
    Those residuals are horrible. The good thing, there is a lease cash incetive of $3,500 if you go with US Bank.

    I just ordered an R-Design
  • Hello,
    My wife has an '08 XC90 3.2 AWD with 17 inch wheels. The tires are due for replacement, but the car is a lease and we are looking to return it next March when the lease is up. Since we are going into winter, I am tempted to take advantage of a really good deal on winter tires and just keep them on for the next 15 months til the lease finishes up. I am wondering if there are any issues with returning a lease with winter tires on the car (assuming tread level is ok)?
  • jayriderjayrider Posts: 3,602
    If the tires look like winter tires the inspection will probably result in you paying for a set of all seasons. If they aren't obviously winter tires you might slip by. I wouldn't chance it -- just buy all seasons. you might also need to buy tires of comparable quality. No off brand cheapos.
  • Hi HJH22,

    I just bought out my '08 XC90 from Volvo finance. It was 2 years old with 21K miles

    First off Volvo finance will only give you the buy-out price to the dealer. So you have to go through a dealer. Second expect to pay the buy-out price in your lease. Back when gas prices were over $4 the buttom fell out of SUV prices and you could get offers $4,000 below buy-out . Well the gas prices are down and the SUV market has fully recovered.

    I converted my car to CPO (Certified Pre-owned) when I bought it out for an additional cost of $1,500. This gives me 4 more years of warranty, I will not come near the mileage ceiling. So for $32,000 plus tax and tags I bought a CPO car that I knew everything about since I was the previous owner!

    I have AWD, 3rd Row, Premium, Versatility, and Convience package with backup system, Pollen Filter, and folding mirrors.

    I could not get a 2010 XC90 fully loaded for anywhere near $32,000. I have about 90% of the safe and sound with the CPO.
    $4k or more difference to get into a 2010 was not worth it in my opinion. Plus, I cannot tell the difference from a 2010 vs 2008. HD radio might be the only real difference.

    Note: I believe a well maintained Volvo goes forever. I have a '96 850 with 160K (the kids car), and a '01 S80 (mine) with 90k. I get a new Volvo every 7 years or so whether I need one or not. My wife loves her XC90 she will drive it for many years.
  • zamozamo Posts: 122
    They look at the remaining tread only. Doesn't matter the brand.
  • This morning I got an email from Costco offering:

    Purchase a new Volvo XC60, XC70 or XC90 between November 3, 2009, and
    January 4, 2010, to receive:

    * Volvo employee pricing for the XC60
    * $500 off Volvo employee pricing for the XC70 and XC90
    * PLUS all available rebates and incentives
    * PLUS a $500 Costco Cash Card

    How do I figure out what "employee pricing" is for the XC90?


    (Notice that the email specifically says "purchase" so I don't know if these incentives would apply to a lease)
  • I'm not a Costco member, but I'm curious if anybody knows what their numbers are. I couldn't swallow the overinflated used car prices so I opted for OSD in January. I'm taking my oldest son to Sweden on January 1, for free!
  • Sounds great! Have a good time and a safe trip!

    I'm going to check with Costco tomorrow. It will be interesting to see what the numbers are. Just poking around Overstock, I am getting prices below invoice, so I can't imagine how much better "employee prices" are, if at all. I personally think this thing is a slug, but my wife seems to like it, and I guess she should drive what she likes.

    I'll post what I come up with.
  • I have a 2007 XC90 (Climate, Premium 12k a year) with 30000 miles and a lease ending in May. The lender (Huntingdon Bank) is anxious to have me buy the car early and has made the following offer:

    based on a purchase price of $23,395, they will waive some fees, charge me 5.99 percent on the loan and no money down. they calculate $456 a month with some extended warranties, $426 a month without. Both figures are less than my current lease price, and owning would allow me to increase the insurance deductibles too.

    Questions: 1) is this a good deal? 2) are there better deals coming -- is it wiser to wait a few months and see if they are willing to charge even less? When I talked to them about 6 months ago, they were not as flexible as they seem to be now.
  • how does 23,395 compare with the residual value you originally got? are they waiving all remaining lease payments?
  • The end of lease value is, I think, in that neighborhood. I did understand them to be saying that they would waive all future lease payments. The loan would just replace the lease.
  • So essentially you are going to save five or so lease payments? Sounds pretty good to me. If I were you I would still try to get a little more out of them, especially if this was their first offer, but be prepared to pull the trigger in case you can't. After all, if you wait, you'll still have to make lease payments which I kind of doubt you'll be able to recoup. Good luck.
  • Please let us know about the Costco price.

    Regarding your comment about it being a "slug" - I agree. My wife picked out and loved our '07. She was happy with it until she drove an X3 and really, really enjoyed the newfound handling/drivability. We only have 1 child so the reduced space hasn't been an issue yet. Child #2 is on the way and she tells me she wants a Thule roof carrier instead of upsizing because it's more fun to drive and easier to park in day to day use. If we need more room we'll most likely consider the XC90 again because we were both happy with it.
  • My wife is tired of driving a 1995 Land Rover falling apart. We are looking at a 2010 black/black XC-90 v6 with nav package, wood wheel, climate pack and msrp of $46,125. With Costco deal, they will bring down to $42,591. Our friend will sign on title and we save another $1500 off, so out the door at $41,091. At 3.9% and $15,000 down we'd have $591.25 a month payments for 60 months (same as my student loans, ironically).

    We looked at lease option, $30,250 for 26 months with Costco deal...$17,066 residual.

    Never leased before, and we keep cars a long time (I'll drive my mustang into the ground).

    Does our purchase price sound like a good deal? I've looked around a bit and it seems like no one tries to go below the Costco price. My wife is too impatient to fly to Sweden and is ready to seal the deal.

    Any thoughts would be much appreciated.
  • Sorry - I meant 36 months on the lease.
  • zamozamo Posts: 122
    If I were you and wanted to purchase, I would rather lease through US Bank and then finance the payoff with another bank. Volvo is giving out $4,250 extra cash incentive if you lease through any other 3rd party. Savings add up.
  • Thanks for the advice. So you'd do the 36 month lease and then refinance the residual purchase ($17,988 they told us)? They ran those numbers with the $4250 discount...and, with fees and all, totalled $39,366...about $725 a month plus another $75 for taxes per month.
  • zamozamo Posts: 122
    I wont even wait for the 36 months. I would refinance the payoff amount within 6 months. The interest rate on a lease takes into consideration both cap cost and residual so the rent charge is higher than a regular loan. You can always payoff your car anytime during a lease.
  • kyfdxkyfdx Posts: 119,941
    Just to clarify the financing on the lease... You may add the CAP cost and residual together in the calculation, but you are actually paying the finance charges on an average of those two numbers, not the sum..

    So... the finance charges are similar to a loan..

    Host-Prices Paid Forums

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • zamozamo Posts: 122
    This tricked me
    Finance Fee = ( cap cost + residual ) × .money factor

    But at the end they are alike (lease vs loan). Just made the calculation.

    So familyguy8, seems that you can choose to pay off at anytime. It seems best to do so at lease end.
This discussion has been closed.